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Economic Integration and Trade Quiz

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Questions and Answers

What is the impact of signing a trade treaty with a Most Favored Nation clause?

Both nations now had to extend their lowest tariff on all goods with their treaty partner. (correct)

Diplomatic relations increased.

Immigration between two nations was liberalized.

They made tariffs for the two countries as high as possible.

What was a weak point of the gold standard in the period between the two world wars?

Controls on capital flows.

The loss of British leadership at the international level. (correct)

Lack of paper money.

Immigration.

What is a likely cause of hyperinflation in places like Germany between the wars?

Reparations payments and government budget deficits. (correct)

High growth in GDP per capita and 'overheating' of the economy.

Expectations of lower growth.

Commodity price shocks.

What happens when nations sign a trade treaty with a Most Favored Nation clause regarding tariffs?

Both nations must extend their lowest tariff on all goods with their treaty partner. Signup and view all the answers

Why was the gold standard in the period between the two world wars considered weaker than before World War I?

Nations could not commit to play by the rules of the game. Signup and view all the answers

What is the effect of signing a trade treaty with a Most Favored Nation clause regarding tariffs?

Both nations extend their lowest tariff on all goods with their treaty partner Signup and view all the answers

What contributes to hyperinflation in places like Germany between the wars?

Reparations payments and government budget deficits Signup and view all the answers

Why was the gold standard in the period between the two world wars considered weaker than before World War I?

Loss of British leadership at the international level Signup and view all the answers

What was a notable characteristic of capital flows after the marginal product of capital diverged?

Capital flows were liberalized Signup and view all the answers

Economic Integration and Trade Quiz

Choose a study mode

Podcast

Questions and Answers

What is the impact of signing a trade treaty with a Most Favored Nation clause?

What was a weak point of the gold standard in the period between the two world wars?

What is a likely cause of hyperinflation in places like Germany between the wars?

What happens when nations sign a trade treaty with a Most Favored Nation clause regarding tariffs?

Why was the gold standard in the period between the two world wars considered weaker than before World War I?

What is the effect of signing a trade treaty with a Most Favored Nation clause regarding tariffs?

What contributes to hyperinflation in places like Germany between the wars?

Why was the gold standard in the period between the two world wars considered weaker than before World War I?

What was a notable characteristic of capital flows after the marginal product of capital diverged?

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